Mountain Brook officials: Pig's rumored replacement could mean 80 percent less tax revenue, loss is about more than money

Crestline's Piggly Wiggly as photographed in July 2013. Officials announced on September 12, 2013 that the store will close its doors in November. (Frank Couch/fcouch@al.com)

MOUNTAIN BROOK, Alabama -- Mountain Brook’s City Clerk/CFO told AL.com today that it could take the city as long as two years to financially to fully adjust to and understand the effects of the tax revenue shortfall expected in connection with the loss of Crestline Village’s Piggly Wiggly.

When news broke yesterday via a statement from store owner Andy Virciglio that despite their best efforts, the beloved pig will close its doors before year’s end, the city already had a plan in motion.

In anticipation of the loss, said Boone, the city decided to account for the projected loss in planning the 2014 fiscal year budget. Rather than include the store’s projected sales tax revenues in the city’s General Fund budget for 2014, Boone said he estimated next year’s revenues without including the figures the Piggly Wiggly would have contributed.

“When we heard that the store might close,” said Boone, “we decided to take a worst-case stance.”

Despite the closing of the Piggly Wiggly, said Boone, the most recent budget projections indicate that the city can expect a sales tax revenue of approximately $9.4 million—4 percent more than what the city budgeted for in 2012. Sales tax revenues, said Boone, account for approximately 26-27 percent of the general fund revenue balance.

Though the city does not anticipate a sales tax revenue shortfall that would lead to a deficit, Boone said the city will still feel the effects of the store’s closing.

“Collectively,” said Boone, “the city’s five grocery stores are the largest source of revenue for the city. Losing one hurts.”

The city will continue to grow and prosper, he said, but not as strongly as it would have should the pig had stayed.

For now, it’s too soon to predict the long-term effects the store’s closing will have on the city financially. Especially, said Boone, because it’s unclear who will take over the space.

Rumors about a possible 'pig' replacement have been rampant since the beginning.

“We’ve heard that Walgreens is a possibility,” Mountain Brook City Manager Sam Gaston previously told AL.com. “We’ve also heard that CVS Pharmacy may consider relocating to that space, but again, these are just rumors.”

A move to a pharmacy-like business in the area, said Gaston, would mean more than just unhappy residents: it would mean a decrease in potential tax dollars. The city, said Gaston, calculates that a drug store-like business would only bring in approximately 20 percent of the tax dollars that the Piggly Wiggly currently generates for the city of Mountain Brook.

For Mountain Brook Mayor Terry Oden, the store’s closing means more than a loss in tax revenue.

Crestline Village Piggly Wiggly. (Frank Couch/fcouch@al.com)

“Some things should be done not for the money,” Oden told AL.com today, “but for the good of the city, for the good of the community."

Oden, who himself has fond memories of shopping at the pig and friendly, loyal employees, said he is “devastated” about the pig’s closing.

“It’s a tremendous loss for Crestline,” he said. “It’s as much of a convenience and as it is a necessity. The pig is an institution. I cannot believe that the two of them (the Virciglios and the Scotts) could not come together to reach a resolution.”

In the days before he had an office, said Oden, the pig would serve as a meeting ground for him and his future clients, he said.

“I did a lot of business there,” said Oden with a laugh. “People would catch me there and tell me their problems.”

The pig, he added, has given back to the city for as long as he can remember.

“They always supported Mountain Brook schools,” he said, “and supported the city in many civic endeavors whenever they could. They’ve been great corporate citizens.”

As for the pig’s possible replacement, Oden said he’s not particularly happy with what he’s heard.

“I’m not in favor of a big-box anything,” he said. “We don’t need another drug store, period—if that’s what is going there.”

The city, said Oden, has its hands tied.

“Anything the city could have done to save the situation we would have done,” he said, “but I just don’t think there’s anything we can do.”

For more on how the city’s residents are responding to the news, click here.

Efforts to reach the property's landlord were not immediately successful. The property landlord's leasing agent said the company could not comment on past, present or future negotiations.